Impact of Deficit Financing, Education and Unemployment on Human Development: An Analysis from Pakistan

Abstract

It has been observed that budget deficits affect the economies in the world. Public expenditures are also very significant for high economic development. Such expenditures must be increased during economic upturns and should be decreased during fiscal crisis. The existing research has emphasized on the dilemma of budget deficits and human development in Pakistan economy. We have used data from 1986 to 2024 in Pakistan economy. Study has also focused on the role of human capital and Government consumption expenditures in affecting human development. The result showed that budget deficit has affected the economic development very positively. Moreover, human capital has also enhanced the human development of the Pakistan economy. Finally, it is found that unemployment rate has decreased the economic development in that economy. It is recommended that Government should allocate more budgets to education for achieving high human development. Government must provide more job chances to the general public. Finally, there should be more economic and political stable environment for high development.